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The role of sustainable development and innovation on firm performance

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  • Jaime Guerrero‐Villegas
  • Laura Sierra‐García
  • Beatriz Palacios‐Florencio

Abstract

In the new economic scenario, characterized by a rapidly changing environment, companies are pushed into seeking new responses in order to survive and succeed. Companies are looking for new activities to improve their economic performance. Furthermore, these activities have been focused on innovation and/or socially responsible aspects. This paper analyzes the relationship between corporate social responsibility (CSR), innovation and its effect on performance. Especially, it shows if innovation has a fundamental role in the development of socially responsible practices or if social issues are responsible for practices that lead to greater innovation and, consequently, to greater performance. Data were collected from a sample of 121 Spanish wineries. The results show that CSR and innovation act as a mediator depending on the measurement of performance used. CSR, specifically, acts as a mediator between innovation and objective performance. However, managers perceive that the relationship between CSR and performance improves through innovation activities.

Suggested Citation

  • Jaime Guerrero‐Villegas & Laura Sierra‐García & Beatriz Palacios‐Florencio, 2018. "The role of sustainable development and innovation on firm performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1350-1362, November.
    • Handle: RePEc:wly:corsem:v:25:y:2018:i:6:p:1350-1362
    DOI: 10.1002/csr.1644
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    6. Maria Ángeles Alcaide González & Elena De La Poza Plaza & Natividad Guadalajara Olmeda, 2020. "The impact of corporate social responsibility transparency on the financial performance, brand value, and sustainability level of IT companies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 642-654, March.
    7. José Manuel Santos‐Jaén & Antonia Madrid‐Guijarro & Domingo García‐Pérez‐de‐Lema, 2021. "The impact of corporate social responsibility on innovation in small and medium‐sized enterprises: The mediating role of debt terms and human capital," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1200-1215, July.
    8. Gema García‐Piqueres & Rebeca García‐Ramos, 2020. "Is the corporate social responsibility–innovation link homogeneous?: Looking for sustainable innovation in the Spanish context," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 803-814, March.
    9. Dongdong Li & Leonard F. S. Wang, 2022. "Does environmental corporate social responsibility (ECSR) promote green product and process innovation?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(5), pages 1439-1447, July.
    10. Shengyang Qin & Xinxing Duan & Ahmad Fatehallah Al-hourani & Naif Alsaadi, 2022. "Evaluation of Total Quality Management in Turkish Pharmaceutical Companies: A Case Study," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    11. Xuhua Hu & Bertha Ada Danso & Isaac Adjei Mensah & Michael Addai, 2020. "Does Innovation Type Influence Firm Performance? A Dilemma of Star-Rated Hotels in Ghana," Sustainability, MDPI, vol. 12(23), pages 1-27, November.
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    13. Peggy M. L. Ng & Tai Ming Wut & Kam Kong Lit & Cherry T. Y. Cheung, 2022. "Drivers of corporate social responsibility and firm performance for sustainable development—An institutional theory approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(4), pages 871-886, July.
    14. Fu‐Chiang Chen & Imen Tebourbi, 2021. "The relationship between business performance, corporate social responsibility, and innovation capital: A case study of Taiwan," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(2), pages 360-368, March.
    15. Aldona Małgorzata Dereń & Jan Skonieczny & Sylwia Łukaszczykiewicz, 2022. "E-Learning as an Instrument for Managing Knowledge in the Field of Sustainable Development in a Chemical Company in Poland," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    16. Salvatore Esposito De Falco & Giuseppe Scandurra & Antonio Thomas, 2021. "How stakeholders affect the pursuit of the Environmental, Social, and Governance. Evidence from innovative small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(5), pages 1528-1539, September.
    17. Shih-Chia Chang & Ming-Tsang Lu & Mei-Jen Chen & Li-Hua Huang, 2021. "Evaluating the Application of CSR in the High-Tech Industry during the COVID-19 Pandemic," Mathematics, MDPI, vol. 9(15), pages 1-16, July.

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